On 8–9 April, the documented renewable energy industry gathered in Amsterdam to discuss the state of global markets. The big talking point: what is the impact of Energy Attribute Certificates worldwide, and how can we maximise the benefits they deliver?
Below is a summary of the discussions — our key takeaways for renewable energy buyers aiming to stay up to date and understand where the markets are heading.
What are the positive outcomes of buying documented renewable energy? This question was central to a conference focused on whether buyers of Energy Attribute Certificates (EACs) are truly making a real-world impact.
The short answer is a resounding yes. There are numerous positive outcomes that voluntary EAC buyers trigger with their choices. These include providing revenue to renewable energy producers, making carbon-free energy more competitive; inspiring business partners and industry peers to launch decarbonisation programmes of their own; enhancing corporate transparency and reporting; generating environmental and social co-benefits, such as ecosystem restoration and access to clean electricity in underserved communities; and unlocking green capital. All of these are measurable and verifiable impacts — and the list goes on.
Over the past five years, the Guarantees of Origin market alone has generated close to 9 billion euros for renewable energy producers. Meanwhile, international markets continue to mature. As Adam White, Director of RECS International, put it, “It is possible to create a virtuous cycle of demand, income, and low investment costs.”
To achieve that, consumers must recognise the enormous power they hold. Perhaps it is time to expand the narrative and tell a more compelling story — one that reminds us that markets can drive transformative change.
What vintage GOs should companies buy to cover this year’s electricity consumption? Well, it depends on the country. Currently, organisations can purchase GOs produced in a given year and use them to cover consumption in a different year — either before or after. These rules vary by nation, which often creates confusion for buyers.
To eliminate this ambiguity and make the GO system more intuitive, many stakeholders in the meeting advocated for strict annual matching — requiring that electricity consumption in a given year be matched with GOs produced in the same year.
Annual matching would also improve price transparency. At present, uncertainty surrounds the total GO supply for a given year and whether GO prices reflect actual supply and demand during that period.
There is broad agreement on this within the EAC community. Henrik Dam, Senior Expert at the European Commission, stated that the conditions for countries to implement annual matching are already in place. It is now up to member states to follow through. Corporate consumers may also be able to make their voices heard and push the market toward greater transparency.
“The reality of our business is that we cannot do 24/7.” This statement by a multinational corporation captures the sentiment of many corporate buyers when the idea of hourly matching between electricity consumption and production is proposed. It is simply not feasible.
So, what is the industry consensus? Most agree that interim steps are needed. While finer granularity is a desirable long-term goal, we cannot jump headfirst to a standard that would be impossible for corporates and current digital systems to handle. Annual matching is seen as a sensible starting point.
“We are cautious when it comes to the fast implementation of granularity,” said Tom Lindberg, CEO of Ecohz. “Talking about 24/7 matching is unrealistic considering the systems we have today, and for many clients too. If it becomes impossible for businesses to keep up with this change, 24/7 could reduce the impact of electricity markets.”
According to the International Energy Agency (IEA), the electricity consumed by data centres is set to double over the next five years, reaching a staggering 945 TWh each year. In the US alone, these facilities are expected to account for nearly half of the growth in electricity demand.
Where will the next data centres be built? Availability of EACs is proving to be a key indicator. Developers are favouring countries where I-RECs are available to ensure new facilities can be powered by renewables.
However, procurement boundaries set by standards such as RE100 — which restricts cross-border EAC purchases outside Europe and North America — may prevent some countries from attracting such investments. Adjusting reporting rules and creating regional markets could help unlock cash flows in countries with EAC systems, boosting clean energy development.
In a recent survey, we asked our clients whether they use biomethane in their operations — and if not, why. The common answer: the market isn’t mature enough. Rules are complex, multiple documents are required to verify renewable gas consumption, and unlike electricity GOs, there is no clear framework for how certificates should be used.
Fortunately, progress is underway. Twenty-four national issuing bodies are in discussions with the Association of Issuing Bodies (AIB) — which oversees the electricity GO system — to establish a harmonised European registry and standardise rules across member states.
In the meantime, many stakeholders are calling for lessons to be drawn from the electricity system. “The demand is there. The reporting is there. Now we need a system that is trustworthy and clear,” said Ivar Munch Clausen, Head of Business Development at Ecohz. “Electricity had years to get a structure in place, but gas does not have that time. We must apply the learnings accumulated over the last 20 years and get things moving.”
While companies can have a positive impact by decarbonising their own operations, Scope 3 action offers even greater potential. By engaging their suppliers in emissions reduction programmes, companies can cut greenhouse gas emissions up to 26 times greater than those from their own operations.
EACs are a crucial tool to achieve this ripple effect. “Many companies are looking for the transparency delivered through EACs, which is driving growing transactions — especially in South-East Asia,” market analysts said.
International REC markets are gaining momentum. In 2023, the most recent year with complete data, I-REC issuance and cancellations rose by 25% and 13% year-on-year, respectively. Businesses are increasingly seeking credible, verifiable documentation of clean energy use. As supply chain decarbonisation accelerates, the I-REC market is set to grow even further.
Donald Trump’s tariffs and his targeting of climate policies have created widespread uncertainty in the US renewable energy space. After the President threatened legal action against state climate and clean energy policies, compliance Renewable Energy Certificate (REC) prices fell, leaving many to wonder where will markets go next.
Yet, there are reasons for optimism. “I don’t believe companies will pull out of voluntary action,” said Tom Lindberg. “We have seen political upheaval before, and it didn’t derail the market.”
The voluntary REC market has seen rapid growth in recent years, steadily gaining ground on the compliance market. Forecasts suggest this trend will continue through 2030. And despite political headwinds, 2024 was a record year for renewable energy deployment in the US.
RECs proved resilient during Trump’s previous term. With strong backing from renewable energy buyers, they can remain robust this time around as well.
Are EACs supposed to be standardised commodities, all with the same characteristics, or should they be unique products, with information that allows companies to choose the traits that are most important to them?
“We are all for harmonisation and having the same protocols and standards across regions,” said the spokesperson for a company which, at the same time, carefully procures its EACs from power plants as close as possible to their consumption sites. “We don’t just do it for the sake of using renewable energy. We want to do good for local communities and showcase the impact of a project.”
Choice is at the heart of energy tracking systems — to allow consumers to decide what the product they want is, whether Nordic hydro, Spanish solar or wind from devices outside of protected areas. It is the differentiation of products that allows organisations to take control and make a mark. “Corporate buyers don’t necessarily want the cheapest and easiest,” Tom Lindberg concludes. “They are also looking for the most impactful.”